Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 25): The FBM KLCI settled down 5.44 points or 0.35% at 1,563.14 during Bursa Malaysia's afternoon break today while the Healthcare Index rose the most in percentage terms as investors bought pharmaceutical shares and sold rubber glove manufacturers' securities.

At 12:30pm, the Healthcare Index, which tracks share prices of pharmaceutial companies, rubber glove manufacturers and hospital operators, rose 101.24 points or 2.39% to 4,338.76.

"While blue chips and banks extend profit-taking consolidation mode, the rubber glove, healthcare and tech sectors should continue to see keen rotational trading interest amid strong retail participation," TA Securities Holdings Bhd analysts wrote in a note today.

Across Bursa, 6.33 billion shares worth RM4.33 billion were traded.

Top gainers included Pharmaniaga Bhd and Duopharma Biotech Bhd while leading decliners included KLCI-linked rubber glove manufacturers Top Glove Corp Bhd and Hartalega Holdings Bhd.

Pharmaniaga's share price settled up RM1.11 or 21.06% at RM6.38 while Duopharma pared gains at RM4.09 after rising to its record high at RM4.32 as these companies are seen as potential beneficiaries of Covid-19 vaccine packaging contracts in Malaysia.

Such sentiment on Malaysia pharmaceutical shares could have taken cue from US equities' Monday (Aug 24) overnight rise.

It was reported that the S&P 500 and the Nasdaq reached new record closing highs on Monday as optimism over potential medical advances in the war against the coronavirus pandemic pushed all three major US stock indexes higher.

Optimism over potential medical advances in the war against the Covid-19 pandemic does not appear to bode well for glove manufacturers.

At Bursa's 12:30pm break today, leading decliner Top Glove's share price settled down RM1.32 or 4.73% at RM26.58 while Hartalega fell 94 sen or 5.37% to RM16.56.

Progress in US-China trade negotiations also supported world market sentiment today. It was reported that Asia's stock markets were mostly higher on Tuesday as investors cheered signs of progress in US-China trade negotiations and following a fresh Wall Street rally.

The positive tone across Asian markets on Tuesday follows reports that top US and Chinese officials see progress being made in resolving concerns around the Phase 1 trade deal reached between the two countries in January, Reuters reported.

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